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#3 The muzters get to shoot at Israel and the world says Israel may not do anything serious to stop them.

That aspect of The Game is not going to change any time soon. But what Iron Dome does is give the Israelis some flexibility in their response.

Without it, the IDF would have no choice but to crush the missileers at the first launch (you say that like it's a bad thing) along with the photo-op infrastructure and civilian shields. This gives them time to prepare and plan before they go riding off into Gaza.

I suspect it also creates a nice international market for Israeli missile defense systems.